LUNA, a blockchain-based on a multi-sector interface, has been increasing its control over building a global payments system through adopting UST. Now, LUNA has turned out to be one of those projects with a blockchain component that has seen its price increase to all-time highs despite the market pulling itself back. This would obviously be due to the massive trend that stablecoins are.
They have turned into a major part of the whole centralized crypto sector- something that has led to the springing of multiple decentralized finance ecosystems over the last couple of years. The ecosystems have been able to grow since they end up providing the liquidity that is required for traders to easily bring them into multiple assets.
According to data that was received from TradingView and Cointelegraph Markets Pro, UST and its subset LUNA have gone from hitting lows of $37.86 on the 26th of November to increase by 106% to a new all-time high of $78.43 on the 5th of December as the trading volume over 24 hours increased to a record $5.66 billion. There are multiple reasons for this increase in the price of LUNA, which also includes the increasing supply of TERRA, a series of new cross-chain integrations for the ecosystem as well as a heavily surging TVL on the network.
UST supply hits a new all-time high
One of the biggest influences behind the increase in LUNA’s strength has been the rapid increase of the circulating supply of UST, which is currently the largest stablecoin (algorithmically-backed) in the market as well as the fourth largest stablecoin with a total market cap of $8.221 billion.
Most of the proponents of crypto that are in favor of decentralized stablecoin options have already embraced the usage of UST in comparison to the USDC.